20/6/2016

Howcanfoodmanufacturersincentivisesustainabilityandboostgrowth?

BreakingNewsonFoodMarketingandRetailing

Howcanfoodmanufacturersincentivisesustainability
andboostgrowth?
ByNiamhMichail+,14Jun2016
Relatedtopics:Financial
FromgreenbonusesforDutchdairyfarmerstobettercropefficiencyforItalianwheatgrowers,European
manufacturersarefindingwaystomakeagriculturalsustainabilitygoodfortheplanetandgoodforbusiness.
BarillaandFrieslandCampinasharetheirexperiences.
SpeakingattheSustainableFoodSummitinAmsterdamlastweek,seniorpurchasingmanageratBarilla,Cesare
Ronchi,said:Werealisedthat[it's]duringtheproductionoftherawmaterialwhichforusismostlydurumwheatthat
wehavethehighestenvironmentalimpact.Sowedecidedtoconsiderourecologicalfootprint,carbonfootprintand
waterfootprintthere.
Thecompany,whichmanufacturesofover1000productsincludingpasta,cerealbasedbakeryproductsandpasta
sauces,partneredwithtwoorganisations:Horta,aspinoffoftheCatholicUniversityoftheSacredHeartwhichconducts
R&DinsustainableagricultureandLifeCycleEngineering,anindependentconsultancyfirm,andfoundthatby
increasingcropefficiency,notonlydiditboostyields,itimproveditsenvironmentalfootprint.

Awinwinsituation
Incollaborationwiththesetwopartners,Barilladrewupahandbookforsustainablewheatcultivationforitsproducers,
withguidingprinciplesonissuessuchasoptimalcroprotation,reducingtillageandfertiliseruse.Dataonweather
patterns,collectedfromBarillasweatherstations,andsoilconditionsareavailableonlineforfarmersatGranduro.net.

ForRonchi,sustainabilitymusthaveafinancialincentivepropellingitifitisto
last.Thefirstimportantaspectforthefarmersisthenetincomenothingis
sustainableintheshortormediumtermifitdoesntgiveaneconomicbenefitto
thefarmer.Sowhatweshowedisthatmakingtreatmentsatthepropertimeand
ifneededtheyhadanimprovementofthenetincomethroughcostreductionand
improvementofquality,hesaid.Andindustryisreadytopaymoreforgood
qualitysoitwasawinwinsituationforthemandus.
WhilefarmersarenotpaidspecificallyforusingBarillassystemRonchisaidthey
receiveapremiumforthebetterqualitywheatandbenefitfromhavinghigher
yieldsandlowerinputcoststhroughamoreefficientuseoffertilisers.

Barilla

Themainimpactisondirectcostbutalsoonthecarbonfootprint.Byimproving
thecropefficiencywehaveawinwin

situationforthefarmers,theplanet,the
environmentandeventuallygoodforus.

In2013Barillaproducedaround90,000tonsofdurumwheatwhilein2015this
increasingtoaround140,000tonnesdurum.CO2emissionsforwheatproduced
inaccordancewithBarillasSustainablefarminghandbookremainedlower(0.46
tCO2eqcomparedto0.52forcommoncroppingsystems).

Boostingfarmersincomewithbonuses
AnothercompanyincentivisingsustainabilitywithaninhouseschemeisDutch
dairycompanyFrieslandCampina.
Since2015thecompany,whichranksnumbersixintheworldintermsof
revenue,hasitdirectlylinkeddomesticfarmersperformancetotheirincome
throughasystemoffinancialbonusesthroughitsprogrammeFoqusPlanet.

Barilla

SustainablebusinessmanageratFrieslandCampinaTacoKingmasaid:Foreverykiloofmilkweget,everyfarmerputs
moneyintoafundandfromthatfundmoneyispaidtothosewhohavegoodscoresonFoqusPlanet.Soitreallypaysoff
toincrease

sustainabilityonafarm.
Therearesixindicatorsforsustainabledevelopment,suchasenergy
consumption,healthandlongevityofcowsandcareforthelandscape,andeach
onehasdifferentlevelsofadherencetomeasureperformance.Improvingthe
healthofcowsmeanstheylivelongerwhichreducesthetotalCO2impactofthe
farm.

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20/6/2016

Howcanfoodmanufacturersincentivisesustainabilityandboostgrowth?

Excellentfarmersversusfarmerswhodontdoanythingcangeneratean
additional10,000ayear.AnaveragefarmerincomeinHolland[is]30,000a
yearwithaveragemilkpricesatthemomentandallourfarmersarefamilybased
businesseswitharound80or90cows.Soitreallyhelpsthefamilyincomeifthey
puttheeffortintocreatingsustainablefarming.
Beyondcarbonemissions,thesepracticesensurethesector'slongevityby
makingitanattractiveworkplaceforyoungdairyfarmers.[We]needtogive
youngdairyfarmersperspectiveforthefuturetomaintainagricultural
production,saidKingma
FrieslandCampina

Buttherearemanywaystoswitchtosustainablefarmingandeachdecision
throwsupitsowndilemmas.Inthedairysectorswitchingtooutdoorgrazingis
seenasasustainablepracticebutitmeansthatmanurecannotbecollected,
compostedandusedasfertiliser.Thereisalsoadiscretionandyouhavetofindthebalancethere.Sometimesthe
dilemmaismoreinbeliefsthanrealsituations.
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